Foxconn plans to set up townships in India and expand beyond smartphone manufacturing – Firstpost

Foxconn plans to significantly expand its operations in India as part of a broader strategy. The company wants to move beyond smartphone manufacturing into new sectors such as electric vehicles, energy and digital health.

Foxconn CEO Young Liu announced these ambitious plans during his recent visit to India, signaling the company’s determination to play a greater role in the country’s economic growth.

Foxconn is widely known for its extensive vertical integration capabilities, especially in the information and communications technology (ICT) space. However, according to a report in the Economic Times, the company is now looking to diversify its portfolio by entering new verticals such as electric vehicles, batteries and digital health. Liu stressed that this move is part of Foxconn’s efforts to climb further up the value chain in India.

The company’s strategy also includes using generative artificial intelligence (GenAI) to drive innovation in these new sectors and make what once seemed impossible possible.

In the energy sector, Foxconn plans to focus on battery production, which is in line with its broader electric vehicle strategy. In addition, the company plans to move into digital health, exploring opportunities in wearable technology, home medical devices and cloud-based healthcare systems for hospitals.

Foxconn’s expansion in India is not just limited to manufacturing. The company also wants to build townships, replicating successful models from Taiwan and China. These townships would be integrated into Foxconn’s industrial parks and would provide housing and other amenities for workers. Liu stressed that these developments would increase efficiency and create value not only for employees but also for Foxconn and its customers.

One such project is already underway in Tamil Nadu, where Foxconn has inaugurated a massive industrial-housing complex at Sriperumbudur. Built by the State Industries Promotion Corporation of Tamil Nadu (Sipcot) in the Vallam Vadagal Industrial Park, this complex has a capacity of around 18,720 workers. It includes facilities such as a laundry, gym, recreation areas, cafeteria and dining hall. This initiative is seen as a step towards building large-scale infrastructure to support India’s growing electronics manufacturing industry.

During his visit, Liu also addressed recent allegations of discriminatory hiring practices at Foxconn’s Chennai plant. Married women were reportedly systematically excluded from job offers. Liu refuted these allegations, stating that Foxconn hires employees regardless of their gender and that women, including married women, make up a significant portion of the workforce. He emphasized the contribution of married women to the company’s success and noted that Foxconn’s hiring rate is on the rise.

Foxconn’s focus on creating a sustainable living environment for its employees is in line with its broader commitment to social responsibility. The company has faced scrutiny in the past for its labor practices, and this new initiative in Tamil Nadu is seen as an attempt to set a positive precedent for the future.

Foxconn’s expansion in India is not just about expanding its existing operations but also about exploring new opportunities in emerging industries. The company is reportedly exploring the possibility of manufacturing iPads in India and entering new product segments such as AI servers and possibly even Google’s Pixel smartphones. In addition, Foxconn has announced plans to invest $37.2 million in a chip packaging and testing facility in India in collaboration with IT giant HCL Group. This move comes after its joint venture with Vedanta Group fell through.

Liu’s visit to India, his second in about a year, underscores the increasing importance of India in Foxconn’s global strategy. As Apple seeks to diversify its supply chain away from China, Foxconn’s expansion in India is seen as a critical part of that shift. The company’s long-term vision for India is to become a major player in the country’s growth story, particularly in sectors such as semiconductors, ICT and electric vehicles.

In conclusion, Foxconn’s ambitious plans to expand into new sectors and develop integrated settlements in India reflect its commitment to becoming a major player in the country’s industrial and technological landscape. As India continues to grow as a manufacturing base, Foxconn is positioning itself to capitalize on this growth, potentially having a significant impact on the country’s economy and workforce.